G Resources: Buyer completes deposit payment in Martabe mine sale
Monday, December 7 2015 - 01:58 AM WIB
Hong Kong-listed G Resources said that the buyer of its Martabe gold mine in North Sumatra has completed the payment of US$35 million deposit as required under the sale and purchase agreement.
?In connection with the Transaction, G-Resources has been informed by: (i) the Buyer that the Buyer has entered into all of the relevant debt financing documents with its lenders; and (ii) the Escrow Agent that the full amount of the Deposit, being US$35,000,000, has been duly paid by the Buyer on 3 December 2015 into an escrow account operated by the Escrow Agent, in accordance with the terms of the Sale and Purchase Agreement and the Deposit Agreement (as the case may be),? G Resources said in a statement on December 3.
G Resources announced December 23 it has agreed to sell the Martabe gold mine for US$775 million (including assumed debt, plus $130 million if gold prices average $1,500 an ounce over a continuous 12-month period before January 2019) to a consortium comprising among others companies linked to Indonesian tycoons.
The company said in a statement that it had signed a sale and purchase agreement with the buyer, a consortium 61.4 percent owned by Australia-based fund management company EMR Capital, 20.6 percent by US-based investment firm Farralon Capital, 11 percent by firm owned by Indonesian business tycoon Martua Sitorus (the co-owner of agribusiness giant Wilmar International), and 7 percent by investment firm controlled by Robert Budi Hartono and Michael Hartono (the controlling owners of Djarum Group, one of the world?s largest cigarette maker).
G-Resources, through its subsidiaries, owns 95 percent of PT Agincourt Resources, which owns the Martabe gold mine.
According to G-Resources? annual report for the year ended December 31, 2014, the Martabe Mine had a resource base of 7.4 million ounces of gold and 70 million ounces of silver, and more than 275,000 ounces of gold and over 2.2 million ounces of silver were produced at the Martabe Mine in 2014.
Editing by Reiner Simanjuntak